The financial sector’s capital position remains strong

14 Dec 2017 13:35

The Finnish banking sector’s capital position is significantly stronger
than the European average, shows the Finnish Financial Supervisory Authority’s
(FIN-FSA) press release. According to information from the end of September, the
banking sector has a strong capital position and the insurance sector a good
solvency position.

According to the FIN-FSA, the banking sector's Common Equity Tier 1 (CET1) capital ratio improved in July–September and was 20.6% on 30 September 2017. The banking sector's total capital ratio increased to 23.0% in the same period.

"The Finnish banking and other financial sectors are on stable ground. This is important because only a sound financial system can offer full support to promoting the economy and employment," says Veli-Matti Mattila,chief economist at Finance Finland.

The Finnish employee pension sector's solvency position improved thanks to a good level of investment return. In January–September, the investment return for employee pension institutions was 5.8%. The life insurance sector's solvency ratio also remained good.